SHORT TERM: gap up and go Tuesday, DOW +349
Overnight the Asian markets gained 1.8%. Europe opened higher and gained 1.5%. US index futures were higher overnight. The market gapped up at the open to SPX 1946 and continued to rally. The SPX had closed at 1932 yesterday. At 10am Construction spending was reported higher: +1.5% v +0.1%, and ISM manufacturing was reported higher: 49.5 v 48.2. The rallied continued throughout the day, with small 4-5 point pullbacks. In the last hour of trading the SPX hit 1978, dipped five points, then closed at 1978.
For the day the SPX/DOW gained 2.25%, and the NDX/NAZ gained 3.00%. Bonds lost 29 ticks, Crude gained 60 cents, Gold slid $9, and the USD was higher. Medium term support rises to the 1973 and 1956 pivots, with resistance at the 2019 and 2043 pivots. Tomorrow: the ADP index at 8:15, then the FED’s Beige book at 2pm.
The market had a gap opening for the first time this week, sixth time since the beginning of last week, and the tenth time since the SPX 1810 downtrend low. Ten gap openings in twelve trading days. After closing at the low of the day yesterday, SPX 1932, the market gapped up to 1946 and rallied to a new uptrend high at 1978. This has been quite a rally in just 12 trading days: +9.3%. During the first two uptrends of the previous bear market, the SPX rallied a similar 8.4% in 11 days, and 9.9% in just 7 days. With the Major wave B uptrend now confirmed in all four major indices, we should start looking for it to end soon. At today’s high the SPX has retraced more than 50% of the Major A downtrend, has reached the 1973 pivot range, displays an Int. C nearly exactly 0.618 of Int. A, is quite overbought short term, and is displaying a negative divergence on the daily RSI. Plenty of technicals to start completing an uptrend. Short term support is at the 1973 and 1956 pivots, with resistance at SPX 1999 and the 2019 pivot. Best to your trading the Beige book!
MEDIUM TERM: uptrend
LONG TERM: bear market
Boy, will this market ever stop or we’re going back to Oct 2015 when V-shape took us to new time high? It feels like it now. spx had 200 point move in 2 weeks
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Short at close lets see..
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SPX, ‘1987’ is +55 off the low, how ironic
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1973 pivot cleared. next stop 2119 pivot. Still in search of Reality
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2019?
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yes
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https://torehund.wordpress.com/2016/03/02/the-two-faces-of-brent/
..where is the Bear, and where is the Bull.
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Just bought SQQQ at 20.70 with the proceeds of yesterday’s sell of 50% of TQQQ. Still holding the remainder of TQQQ.
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One last thing….Anyone ever go to investing.com and read the chat area? Makes me thankful that Tony is here and knowing ewt among other things. It’s crazy with how most of them trade. I would have to guess that most of them don’t trade and just say things because if they all trade about 90 percent of them would be broke.
thanks tony for all you do
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Jimmy, So, according to you what %age are successful traders? above 90 or below 90?
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in that chat room 10% are successful or at least have a chance. I am guessing probably 40% are successful could be less or more. I know all my friends I made when I worked in Chicago back in 2001 don’t trade anymore. I am the only one left and don’t plan on going anywhere.
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I check in on some mainstream boards sometimes for individual stocks. Those people are small-time gamblers plain and simple. You get people accusing the government, foreign shorters, EACH OTHER of manipulating stocks one way or another when things aren’t going their way. 99% of traders lose money over the long-term.
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“…You get people accusing the government, foreign shorters, EACH OTHER of manipulating stocks one way or another when things aren’t going their way. ”
We NEVER get that here!
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😉 We only berate the illuminati here.
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I agree except for the gambler part. I know a lot of people think playing the stock market is gambling and for most I guess it is because they don’t know what they are doing. TO me, the market is a never ending piece of art. She is alive and some people love what they see and others hate it. But if you love it and work hard at it you can have a wonderful life.
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